Apple makes $500 million deal with miner MP Materials for rare earths magnets

In a significant move to enhance its U.S. supply chain, Apple has forged a $500 million partnership with MP Materials, a leading miner of rare earths. This collaboration, announced on Tuesday, will focus on the production of rare earth magnets as well as the establishment of a recycling facility. Following the announcement, MP Materials saw a 10% surge in its stock prices, while Apple shares experienced a slight increase. Under the terms of the deal, Apple will source rare earth magnets produced at MP Materials' facility located in Fort Worth, Texas. Additionally, both companies will work together to develop a new recycling line for rare earth materials in Mountain Pass, California, with shipments of magnets expected to commence in 2027. Apple CEO Tim Cook emphasized the importance of this partnership, stating, "American innovation drives everything we do at Apple, and we're proud to deepen our investment in the U.S. economy." He highlighted that rare earth materials are crucial for the production of advanced technologies, and this alliance is set to bolster the domestic supply of these essential components. The agreement is projected to generate numerous jobs in manufacturing and research and development. Rare earth magnets are vital for a wide array of products, ranging from consumer electronics like smartphones and computers to electric vehicles and renewable energy systems. In recent years, the U.S. has been actively seeking to reduce its dependence on China, the dominant player in the global rare earth elements market. Notably, MP Materials operates the only rare earth mine in the United States. Earlier this month, the Department of Defense made a strategic investment, becoming the largest shareholder by acquiring $400 million in preferred stock, aimed at enhancing the domestic supply of rare earth magnets. Earlier this year, Apple also committed to investing over $500 billion to strengthen its manufacturing capabilities within the U.S., which includes plans for a new factory dedicated to artificial intelligence servers in Texas.